A little clarification on write-offs with hobbies: you can only deduct expenses for a hobby activity against any income from that activity. Losses (expenses in excess of any income from that activity) from a hobby activity can not be used to offset income from other sources, like an off-the-farm job. NOTE: A $2000. deduction does NOT save you $2000. off your tax bill. This is widely misunderstood, but the deduction reduce the amount of your taxable income. In other words, if your taxable income is $22,000. , the deduction of $2,000. would give you a taxable income of $20,000. Disclaimer: This is an over simplification of a tiny piece of a massively complex tax code, and I am not a CPA. Consult a tax professional familiar with agriculture.
Jefferdaughter So true! I'm not a CPA either, but I've been explaining that for years (I'm 62) to people who say they don't want to get rid of their mortgage because they want the tax deduction. Thank you for sharing this - some much needed info.
The term 'unfair advantage' has been around in the small and eco-farming world for a long time now. It's wrong. An unfair advantage would include the laws and regulations that favor the large-scale industrial farming operations - laws and regulations that can put a family-scale farm out of business. The things so often called our 'unfair advantage' - winter grazing in the south; proximity to cities for direct marketing; the superior flavor and nutrition of pasture-raised livestock... these are among out FAIR advantages!!
I sell live chickens for 10 - 15 usd a piece. I scale my numbers like this. If 1 family buys 1 chicken a week x 50 weeks in a year that's 500usd a year per family. That mean for every 50 bird is 500usd. Go knock on doors tell people your selling chickens. In your city alone there is over 50k people. All you need is 200 people. 200 birds × 10usd each x 50 times (1 a week) is 100,000 per year.
This is a great video! I've watched a couple of the budgeting videos for raising pastured poultry... why don't ppl include land or lease cost in the numbers?
I'm in the Nexton area looking to buy or lease land for the same thing. Have you gone to any of the farmers markets or joined the local farm groups on social media?
I'm confused by how the terms Gross and Net are being used here. I've been a Cabinet Maker for 30 years and have run the business for the past 25 years. I do the Bookeeping and utilize a CGA for taxe returns and ongoing Financial advice and analysis. The net profit is what is left AFTER Overhead, Material AND Wages...including the owner's wages...is paid. Unless the cost of the Chicken has included a Labor portion...the $50.00, $39.50 and $100 per hour shown in the video is actually Gross Profit by accounting standards and NOT Net Profit...or Business Profit as is universally defined. Still....$50.00 per hour Farmer's Take Home pay for that particular Revenue Stream is not bad.
In the video he is referring to Gross as Total Sales and Net Profit as the profit left after all expenses. There isn't the separation of Gross and Net profit. The net profit left is what the farmer keeps.
Processing chickens is not for everybody. Do 10 okay. Do fifty things change. Do 500 you better have a constitution and passion that allows for death all day. As with everything in farming, finding your personal balance and limits are important. Start SMALL.
The people who process on farm swear by it as cost effective, and ideal for flexibility, quality control, and animal welfare. Those of us who have a good butcher within driving distance and don't like taking on unnecessary headaches are glad to do it this way.
If you are processing 500 a day on a farm, you are breaking the law. Depending on state laws, the most poultry a small producer can legally move is 20,000 birds. So 380ish a week. Anything above that has to go to a USDA processor. But, I do agree with you. Processing every day, cannot be good for the soul.
Yes, but you wouldn't be cutting hay off that patch of land for a while so you would have to work out the timing. It probably isn't an issue because you probably have a lot more hay land than is needed for broilers.
I would not at all consider it per hour the same way. I would consider all hours, minus about 45 min. per day × 20 days a mo. to compare to off farm job, & see if youre making at least a reasonable living per hour wage, for all hours. Then, if you can only do this less than 8 months of the year, sorry, you're customers do not need to be paying for you to have a 4 month vacation, that's not honorable. You need to be having multiple income streams. Don't charge enough for the working month hours to make up for the off season lack of income. If you happen to be able to make a living like that, by gold mining or something, great, I just don't think that it's typically justifiable, or good. If you can grow & sell it for a higher yet fair price, & grow & sell enough things that way, during those months, to not have to produce the same amount every month, fine, great. Garlic, tree products, honey, cut flower borders.
Supply and demand, do you want ethically raised pastured livestock? Then you will pay what you're willing to pay for it, and if it's not what he asks then either he lowers his price to meet you, or you just don't buy. And what"s the difference between your argument and teachers that get paid an annual salary for only working 8-9 months a year?
Do you think a fire fighter should only be paid when they are putting out fires? The land still needs to be paid for. Coops need to be repaired. There's a lot of work and expenses that continue outside of the productive months.
A little clarification on write-offs with hobbies: you can only deduct expenses for a hobby activity against any income from that activity. Losses (expenses in excess of any income from that activity) from a hobby activity can not be used to offset income from other sources, like an off-the-farm job. NOTE: A $2000. deduction does NOT save you $2000. off your tax bill. This is widely misunderstood, but the deduction reduce the amount of your taxable income. In other words, if your taxable income is $22,000. , the deduction of $2,000. would give you a taxable income of $20,000. Disclaimer: This is an over simplification of a tiny piece of a massively complex tax code, and I am not a CPA. Consult a tax professional familiar with agriculture.
Jefferdaughter So true! I'm not a CPA either, but I've been explaining that for years (I'm 62) to people who say they don't want to get rid of their mortgage because they want the tax deduction. Thank you for sharing this - some much needed info.
Ppl still pay taxes!? Pshhhh No wonder they (Biden Admin.) keep giving money to Ukraine 🇺🇦 but won’t fix OUR roads/infrastructure.
The term 'unfair advantage' has been around in the small and eco-farming world for a long time now. It's wrong. An unfair advantage would include the laws and regulations that favor the large-scale industrial farming operations - laws and regulations that can put a family-scale farm out of business. The things so often called our 'unfair advantage' - winter grazing in the south; proximity to cities for direct marketing; the superior flavor and nutrition of pasture-raised livestock... these are among out FAIR advantages!!
Dude just say what it is.big gov is our enemy. Democrats and rhinos have destroyed the greatest pkace on Earth. Thanks boomers.
I sell live chickens for 10 - 15 usd a piece. I scale my numbers like this. If 1 family buys 1 chicken a week x 50 weeks in a year that's 500usd a year per family. That mean for every 50 bird is 500usd. Go knock on doors tell people your selling chickens. In your city alone there is over 50k people. All you need is 200 people. 200 birds × 10usd each x 50 times (1 a week) is 100,000 per year.
Or you cut them up and sell the parts more than the whole. Skinless boneless breasts alone are going for $10/lb
Great, dense tutorial Darby! Well done.
This is a great video! I've watched a couple of the budgeting videos for raising pastured poultry... why don't ppl include land or lease cost in the numbers?
I suppose land cost and taxes are so variable even across states. It's hard to incorporate into a cost structure.
Thank you for sharing this important information listening from Bangs, Tx
I'm near the BMW plant in South Carolina and hope to start with the farmers market in the same town, what's your thoughts or opinions? Thanks!
I'm in the Nexton area looking to buy or lease land for the same thing. Have you gone to any of the farmers markets or joined the local farm groups on social media?
Sorry to nit pick, but amortize is pronounced "aM-Mort-Eyes" not "aM-Meter-Eyes"
The math is great. Finding that many buyers is probably impossible.
Not really. A lot of people are doing this exact model.
Good information. What location do you take your poultry to for processing?
Is there a practical alternative to taking the birds somewhere? As in butchering them yourself or hiring someone to come to you?
Yes, but processing on farm isn't for everyone. We have done a few episodes discussing on farm processing on the Grassfed Life podcast.
@@DiegoFooter TY
I'm confused by how the terms Gross and Net are being used here. I've been a Cabinet Maker for 30 years and have run the business for the past 25 years. I do the Bookeeping and utilize a CGA for taxe returns and ongoing Financial advice and analysis. The net profit is what is left AFTER Overhead, Material AND Wages...including the owner's wages...is paid. Unless the cost of the Chicken has included a Labor portion...the $50.00, $39.50 and $100 per hour shown in the video is actually Gross Profit by accounting standards and NOT Net Profit...or Business Profit as is universally defined. Still....$50.00 per hour Farmer's Take Home pay for that particular Revenue Stream is not bad.
In the video he is referring to Gross as Total Sales and Net Profit as the profit left after all expenses. There isn't the separation of Gross and Net profit. The net profit left is what the farmer keeps.
What size are your chicken tractors? 10x12?
Could you decrease cost by processing the chickens on the farm?
Probably, but not by much. The tradeoff is hired labor and a large up front equipment cost.
Processing chickens is not for everybody. Do 10 okay. Do fifty things change. Do 500 you better have a constitution and passion that allows for death all day. As with everything in farming, finding your personal balance and limits are important. Start SMALL.
The people who process on farm swear by it as cost effective, and ideal for flexibility, quality control, and animal welfare. Those of us who have a good butcher within driving distance and don't like taking on unnecessary headaches are glad to do it this way.
If you are processing 500 a day on a farm, you are breaking the law. Depending on state laws, the most poultry a small producer can legally move is 20,000 birds. So 380ish a week. Anything above that has to go to a USDA processor.
But, I do agree with you. Processing every day, cannot be good for the soul.
If you did them in batches, there could be days of 500. Diego had someone on the podcast that does it.
I’m wondering how much different the net profit of this would be in Canada with our quota license fees.
yea I am wondering that for the USA myself
Does your 50/hr include planning/marketing as well as labor or just labor?
Just production labor
Wanted to know how and where you get a contract with a prosser even without a contract, who will by them.
Jim
Can land be leased would you suggest leasing over buying at first ?
Lease costs are tax deductible for your business while buying land is not. Yes, it makes a lot of sense to lease.
Your product is worth zero if you cant sell it
Duh!
Very profound...
I can’t quite see the cost per bird in the spreadsheet at 11:27 could someone tell me what it was?
$10.26 on top, $10.46 on bottom.
do you pay anyone you have help you 50 an hour? That's insane money.
My question is, can I run my broilers every time I mow or hay the grass, which means 8 to 10 times per year?
Yes, but you wouldn't be cutting hay off that patch of land for a while so you would have to work out the timing. It probably isn't an issue because you probably have a lot more hay land than is needed for broilers.
Frr
I would not at all consider it per hour the same way. I would consider all hours, minus about 45 min. per day × 20 days a mo. to compare to off farm job, & see if youre making at least a reasonable living per hour wage, for all hours. Then, if you can only do this less than 8 months of the year, sorry, you're customers do not need to be paying for you to have a 4 month vacation, that's not honorable. You need to be having multiple income streams. Don't charge enough for the working month hours to make up for the off season lack of income. If you happen to be able to make a living like that, by gold mining or something, great, I just don't think that it's typically justifiable, or good. If you can grow & sell it for a higher yet fair price, & grow & sell enough things that way, during those months, to not have to produce the same amount every month, fine, great. Garlic, tree products, honey, cut flower borders.
Supply and demand, do you want ethically raised pastured livestock? Then you will pay what you're willing to pay for it, and if it's not what he asks then either he lowers his price to meet you, or you just don't buy. And what"s the difference between your argument and teachers that get paid an annual salary for only working 8-9 months a year?
Thank you for your argument against teachers' pay.
Do you think a fire fighter should only be paid when they are putting out fires? The land still needs to be paid for. Coops need to be repaired. There's a lot of work and expenses that continue outside of the productive months.